Today on Your Money, Your Wealth podcast number 405, we'll find out what Joe and Big Al think about LERPS or life insurance retirement plans.

Plus, they'll spitball whether to take full pension survivor benefits or buy a life insurance policy

and whether to sell losing stocks for even bigger losers to take advantage of the 0% capital gains tax bracket.

They'll also discuss zero coupon municipal bonds and the de minimis rule and target date funds as part of Paul Merriman's

two funds for life strategy. Finally, how do dividends figure into the 4% rule for retirement

withdrawals and should that 4% come from stocks or bonds?

I'm producer Andy Last with the hosts of Your Money, Your Wealth, Joe Anderson, CFP, and Big Al-Cloatine CPA.

Visit Your Money, Your Wealth.com and click Ask Joe and Big Al on air to send in your money

questions as an email or a priority voice message like this one.

Hey guys, this is John from Abilene, Texas.

I drive a 2021 Nissan Armada.

My favorite drink is a margarita with some Mexican food on Friday night.

And my question is, I want to hear y'all's thoughts on a LERP,

a life insurance retirement plan.

Basically, it's a variable universal life insurance policy, most suited for younger high earners that are not eligible to contribute to Roth IRAs.

So they put, call it $1,000 a month into this life insurance policy, the cash value accumulates and it's invested, do that for 10 to 15

years, and then let it grow. And then when they become retirement age, 65, 70, whoever the policy

is designed, then they can take distributions tax-free because it's return of premiums, and then you're

taking loans from the gains.

So obviously the counterargument is that $1,000 a month could just go into a taxable account,

but then you're going to deal with the tax implications later whenever you sell the investments,

whereas the LRP strategy kind of guarantees that it will be tax-free.

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